Question

Blank Corporation owns 60 percent of Grand Corporation’s voting common stock. On December 31, 20X4, Blank paid Grand $276,000 for dump trucks Grand had purchased on January 1, 20X2. Both companies use straight-line depreciation. The elimination entry included in preparing consolidated financial statements at December 31, 20X4, was

Requireda. What amount did Grand pay to purchase the trucks on January 1, 20X2?b. What was the economic life of the trucks on January 1, 20X2?c. Give the worksheet elimination entry needed in preparing the consolidated financial statements at December 31,20X5.